What are the chances of buying a decent house at the court house steps?
Last July, these two youtube videos captured a group of houses on the foreclosure list, and was marked as the ‘Trustee Sale Test Group’, so we could follow up later to see how they did.
The first video shows ten houses in Carlsbad:
Of the ten, five have been sold: 2 short sales, 2 REO resales, and the last was the off-market short sale we saw a couple of days ago. Four others were cancelled, and one still has an auction date looming next week.
In the Carmel Valley video below, the first sold as a short sale for $875,000, Winstanley was foreclosed and is still bank-owned but not on market yet, and the other three cancelled:
Almost a year later, here’s how the 15 fared:
Foreclosed, back-to-bene – 3 (two re-sold, one still held)
Sold Short – 4
Cancelled – 7 (probably loan mods?)
Still on Auction List – 1
The can-kicking program is working well if only half of those on the foreclosure list are actually getting sold. It seems like the loan servicers are moderating the flow pretty well too, so we’ll probably keep seeing the same results – postponements, short sales, cancellations (loan mods), and an occasional deal on the court house steps. (click on the category below, ‘Trustee Sale Test Group’, to see the original posts & comments)